Wednesday, March 30, 2016

Example of Daily Process

This is an example of the daily process I will  be following.
1. Run gappers list from
2. Select top three stocks to watch at the open i.e in this example on 03/30/2016 I choose KERX, OPK and VRNT
 So the first thing I will do is put there three stocks on the 5 min montage and draw the daily levels. This  will be 45 min 20 min before the open.

Second part will come after the market open. I will wait for a clear set-up/ price action. No choppiness in price, solid candles. There one thing I have kind of noticed on the 5 min range. Most of the time if the price is trading above the higher part of the range and emas and vwap are below the price, it set-ups for a long and vice versa. I will explain that on another blog. In this case KERX looked less choppy and was trading on the lower part of the 5 min range and the ema's and vwap were on top. This was setting for an orb short pattern. . next  open the montage that has the 5 min and 2 min chart and watch both time frames closely but more so the 2 min for entry. Define my risk, and enter my trade and immediately put a mental stop and as soon as the price moves my way, enter a hard stop.

KERX was a good example as it showed both the first move and the secondary move. This I call vwap fade aka ema's sandwich.

Trading KERX using this process would have given potential $340. I will definitely use this process in the coming couple of months and test out the results and see if I make any progress.

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